JPMorgan Dividend Leaders ETF JDIV

A compelling defensive option for core global equities. JPM Global Dividend is a compelling option in the global equity income Morningstar Category; it earns an Above Average People rating and a High Process rating.

Helge Skibeli has overseen the strategy since March 2018 and remains the ultimate decision-maker. A J.P. Morgan veteran of nearly 40 years, Skibeli has built his career around fundamental research, having previously led research teams across Asian, US, and global equities.

He is joined by two comanagers. Sam Witherow, a 16-year firm veteran, has been a named manager since February 2019 and, in practice, has increasingly taken on a lead role. Witherow spent his early years as an analyst before shifting into global portfolio management. Michael Rossi became comanager in February 2023. The most junior of the trio, Rossi brings seven years of experience, all at J.P. Morgan, and has worked closely with Skibeli and Witherow since 2019.

Crucially, the portfolio managers are underpinned by J.P. Morgan’s deep fundamental analyst resources, one of the industry’s deepest and most experienced teams. Around 80 sector specialists each cover 20–35 companies, on average bringing 17 years of industry experience and 13 years at the firm.

The strategy employs a disciplined, bottom-up stock-picking process supported by this extensive global research platform. Analysts covering more than 2,500 companies classify stocks as premium, quality, standard, or challenged and assign five-year expected return targets to guide portfolio construction. On top of this, the managers identify three types of dividend-payers: compounders, high dividend growth, and high dividend yield. About half of the portfolio is allocated to compounders, while the remainder is spread across high-yield and high dividend growth stocks.

The manager’s primary focus is on premium and quality names, maintaining a valuation-conscious, conviction-driven approach in a relatively concentrated portfolio of 60-80 holdings. The portfolio favors financially healthy, large- and mega-cap companies, with minimal small-cap exposure.

Under Helge Skibeli’s tenure since April 2018, the strategy has delivered impressive results. Through July 2025, the C Acc Clean share class has produced an annualized return comfortably ahead of both the category average and its benchmark, the MSCI ACWI NR Index. It also outpaced the Morningstar Global High Dividend Yield Index over the same period. Risk-adjusted results have been strong, supported by the strategy’s defensive profile. With a beta of around 0.9, the fund has typically captured a large share of the upside while limiting downside participation.

Note: This share class' Summary analysis is inherited from an analyst-covered share class under the same strategy: JPM Global Dividend A div EUR (SecID: F00000NFCB).

JPM Global Dividend employs a disciplined, repeatable, and flexible approach to dividend investing. The process is supported by one of the industry’s largest global research platforms, earning the strategy a High Process rating.

The investment philosophy centers on rigorous bottom-up stock selection, with limited emphasis on top-down style or factor positioning. J.P. Morgan’s regional analyst teams, covering more than 2,500 companies globally, form the foundation of the idea-generation process. Analysts conduct in-depth fundamental research to classify stocks within the firm’s proprietary framework as premium, quality, standard, or challenged.

Analysts assign a five-year expected return target to each company, incorporating near-term earnings, normalized earnings power, and long-term growth assumptions. These targets are ranked on relative attractiveness, which provides a clear and structured input into portfolio construction. The managers focus predominantly on premium and quality stocks but remain disciplined around valuation to avoid overpaying.

Of the 2,500 stocks, about 1,700 pay a dividend, and every portfolio must do so. From this opportunity set, the managers focus on three types of dividend-payers. Compounders are the primary focus, combining robust earnings potential with a demonstrated record of dividend growth and the ability to sustain this over time. The second group is high dividend growth, typically those with low payout ratios, offering yields below the market average but supported by strong long-term earnings prospects. The final group consists of higher-yielding stocks, which offer superior yield and a consistently high payout ratio supported by strong free cash flow generation.

Approximately half of the portfolio is allocated to compounders, while the remainder is spread across high-yield and high dividend growth stocks. Allocations to the latter two are determined by their relative valuations, but over the cycle they are expected to account for roughly 25% each.

Portfolio construction is conviction-driven and typically invests in around 60-80 stocks, with a maximum active weighting of 5% per stock. As of July 2025, the top 10 holdings accounted for 30.7% of assets, which is higher than both the EAA global equity income category (20.2%) and the MSCI All Country World Index (23.9%).

Turnover is generally high, typically between 60% and 100%, reflecting the team’s willingness to reallocate capital as valuation signals evolve. While this creates a more actively managed profile, portfolio oversight is robust. Quarterly review meetings with JPMorgan’s investment directors provide challenge and accountability on performance, risk, and adherence to process.

Morningstar’s risk model highlights the strategy’s consistent emphasis on financially healthy businesses with durable competitive advantages. There is also a preference for large- and mega-cap companies. Exposure to small caps is minimal, consistent with the philosophy of focusing on globally dominant franchises.

As of July 2025, the portfolio’s largest active overweight exposures were Microsoft, Fidelity, Taiwan Semiconductor Manufacturing, and Meta Platforms. At the regional level, the portfolio’s biggest overweightings are to Europe and the UK, which is offset by its largest underweightings, North America and emerging markets.

By Morningstar sector classification, technology remains the largest absolute weighting and is broadly aligned with the benchmark. Utilities represent the portfolio's most pronounced overweighting, whereas consumer cyclicals represent the largest underweighting.

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered share class under the same strategy: JPM Global Dividend A div EUR (SecID: F00000NFCB).

This strategy earns an Above Average People Pillar rating, supported by the strength of its portfolio managers and the considerable resources of JPMorgan’s global equity platform.

Lead manager Helge Skibeli has overseen the strategy since March 2018 and remains the ultimate decision-maker. A J.P. Morgan veteran of nearly 40 years, Skibeli has built his career around fundamental research, having previously led research teams across Asian, US, and global equities. From 2002 to 2015, he ran the US Analyst Large Cap portfolio before managing JPM Global Select, demonstrating an ability to effectively integrate analyst insights into portfolio construction. His tenure and proven leadership are clear assets.

He is joined by two comanagers. Sam Witherow, a 16-year firm veteran, has been a named manager since February 2019 and, in practice, has increasingly taken on a lead role. Witherow spent his early years as an analyst before shifting into global portfolio management, and his complementary perspective adds depth to the team. Michael Rossi became comanager in February 2023. The most junior of the trio, Rossi brings seven years of experience, all at J.P. Morgan, and has worked closely with Skibeli and Witherow since 2019. He partners with Witherow on daily oversight.

The combination of tenure, complementary skill sets, and a clear succession plan makes this fund well-positioned for the long term. The managers foster a collaborative, transparent culture with an emphasis on teamwork, reflection, and continual improvement. While Skibeli also runs other global funds, they share similar approaches, keeping his workload manageable.

Supporting the managers is one of the industry’s most extensive analyst platforms. J.P. Morgan’s roughly 80 sector specialists average 17 years of industry experience and 13 years at the firm, each typically covering 20–35 companies. They are further supported by research associates, ensuring continuity and a pipeline of talent. This analyst network forms the backbone of the strategy’s stock-selection advantage.

Note: This share class' People Pillar rating and analysis are inherited from an analyst-covered share class under the same strategy: JPM Global Dividend A div EUR (SecID: F00000NFCB).

J.P. Morgan continues to build a track record of strong stewardship, supporting a Parent rating upgrade to High from Above Average.

With more than USD 4 trillion in assets under management (including USD 1.3 trillion in money market funds) and a broad reach, J.P. Morgan is among the largest active asset managers in the US, Europe, and Asia. Although some multi-asset offerings have struggled over the past five years, prompting new leadership to make changes to investment teams, its equity and fixed-income teams boast long-tenured portfolio managers who practice repeatable investment processes that have generally produced strong long-term results. Most of its funds are core building blocks with long lifetimes, though its lineup around the world also includes more-specialized options: Two options-based equity-income exchange-traded funds, launched in 2020 and 2022, are now among the firm’s largest. J.P. Morgan has been an early mover in offering active ETFs, having converted 12 of its open-end mutual funds to the structure and launching others. It isn’t always at the forefront of emerging trends. While it has filed registration statements with the Securities and Exchange Commission for an interval fund and an ETF investing in private markets, it hasn’t yet introduced such an option for all investors, whether on its own or in partnership with another asset manager, unlike some of its closest competitors.

To support the firm’s diverse investment offerings, J.P. Morgan has invested heavily in both portfolio management tools and its client organization. Over the past 10 years, the firm has developed robust proprietary technology with advanced analytics and broad buy-in from investment analysts, portfolio traders, and portfolio managers, all of whom have easy access to the platform. The firm also stands apart for its demonstrated commitment to clients. In the early 2000s, J.P. Morgan began pivoting its engagement with financial advisors to adopt a more consultative approach, supported by its sought-after Guide to the Markets research series that focuses on investor education, not product pitches. This perspective can help clients stay the course, supporting positive investor outcomes.

Incentives reinforce alignment with fundholders. Beginning more than 10 years ago, investment team compensation is tied to three-, five-, and 10-year performance, and portfolio managers must invest at least half of their deferred compensation in J.P. Morgan strategies. Many firms encourage portfolio managers to invest alongside fundholders, but J.P. Morgan goes a step further in requiring client-facing individuals to invest substantial portions of their incentive compensation in the funds.

Although some funds still face high cost hurdles, more than half of share classes charge competitive fees relative to peers.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, JPMorgan (Branding Name ID: BN0000095S), is covered by Morningstar Manager Research.

Performance is evaluated in US Dollar, measured to the end of May 2026.

Short-Term Performance

Over the past 12 months, JPMorgan Dividend Leaders ETF share class returned 16.6%, underperforming its category index, the MSCI ACWI NR USD Index (30.3%), and its Morningstar category peers (23.6%).

JPMorgan Dividend Leaders ETF's Prospectus Adjusted Expense Ratio is 0.47% per year. It places it in the cheapest quintile of the Morningstar US Fund Global Large-Stock Blend Category, where the median fee is 0.88% per year. This cost positioning translates into a Medalist Rating Price Score of 1.69, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.